iclicker_031611_and_CH_8_selected_slides

iclicker_031611_and_CH_8_selected_slides - When preparing...

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On budgeting for ending inventory When preparing Convery - Spring 2011 1
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On budgeting cash collections Yoga Company collects 20% of a month’s sales in the month of sale, 70% in the month following sale, and 6% in the second month following sale. The remainder is uncollectible. Budgeted sales for the next four months are: Jan Feb Mar Apr Budgeted $200,000 $300,000 $350,000 $250,000 Convery - Spring 2011 2
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On cash disbursements ACCRUAL: May (actual) June (budget) July (budget) Sales $42,000 $40,000 $45,000 Less: COGS 21,000 20,000 22,500 Gross margin 21,000 20,000 22,500 Less: S&A 20,000 20,000 20,000 NOI $ 1,000 $ 0 $ 2,500 Goods are purchased in the month prior to the Convery - Spring 2011 3
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On pro forma income statements Given this accrual based income statement, if all sales are received in cash and all purchases and expenses (other than depreciation) are paid in Convery - Spring 2011 4 Sales $550,000 Less: Cost of goods sold 412,500 Gross margin 137,500 Less: Depreciation expense 60,000 Less: Selling and administrative expenses 35,000 Net operating income $42,500
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On budgeting for direct materials The following are budgeted sales data: Jul Aug Sept
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This note was uploaded on 10/21/2011 for the course ACC 202 taught by Professor Sue during the Spring '10 term at Michigan State University.

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iclicker_031611_and_CH_8_selected_slides - When preparing...

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